#Tanzania: Economy, Trade, Development

[u.g boy]

Originally Posted by Geza Ulole

Can u explain Uganda customers behavior esp. on clothing? BTW here is the definition of those two terminologies!

From an architect's point of view my understanding is that a mall is a large physically joined building with a variety of shops each made to enter from the inside or "belly" of the building.

A plaza however sometimes may be as big as, or even larger but with entrances on the outside of the building. Also a physically joined building accommodating a variety of shops.

Read more: http://wiki.answers.com/Q/What_is_th...#ixzz1mAaMbnhw

And mind u, Tanzania economic disparity is the lowest in the region! I will be happy to get the details of those data in the East African!

Ugandans look for the cheap option .The interesting thing is that the mini malls in Kampala seem to get their hands on what the huge retail stores sell so it easy to get designer clothing cheap in Kampala this is why people are seen to swarm the city shopping district you can also buy designer items in the markets in central Kampala surprisingly . The middle class ,better of Ugandans and rich shop in malls why working class tend to shop in the plazas etc. although many working class Ugandans will visit the mall every now and again.As more malls occur the amount of people who can afford to shop in them is also going up this is symbolised in the growing middle class.
thanks for getting a definition for a "plaza"

[Geza Ulole]

Originally Posted by Bongolala

You are right! Losses are losses and tge fact that they are closing down is just awful and shows you what the reality of market is like. Milimani city is the only real mall in Dar that can somehow be compared to the ones in uganda and Kenya.

Watanzania wenzangu, Issue for me is our middle class is only 12% of our population. Uganda has 18% while Kenya has 44.9% middle class. Hii ndio legacy ya JK na CCM. Duh! Kazi hapo.

If the people don't have money there is no need for them to stay in the market. I know there are those that will be emotional and start attacking the company and newspaper but it's our gvt policies that we should attack. To make ourselves feel better we can argue all day but the truth no kwamba investors have decided to close shop.

try to be rational on ur argument ask urself in the same market there are other stores that r doing fine even with that 12% though arguable..! Why don't u think the Deacons couldn't crack the hard nut and penetrate the market?

[Uhuru na Umoja]

Originally Posted by Geza Ulole

At times i laugh when i read the East African news! I don't know where r their figures coming from? Is it cause they lost in that market (bitter looser)? i.e. too much competition from the likes of Woolworths? local fashion and design industry? How comes Woolworths is expanding and this Deacon is hiding behind the market lacks a significant middle class? If the likes of Sabmiller are having 4 Breweries plus a malt plant, likes of Serengeti Breweries (3 breweries) that are both expanding and the likes of booming cement manufacturers! BTW here are the lists of shopping malls apart from
Mlimani City and Quality Center
Shopper Plaza-Msasani
Shoppers plaza-Masaki
Mayfair plaza
Haidery plaza
Seacliff village
Slipway Market & Sea Cliff Village
Aside many others small O'bay Shoping Centre,JM Mall,Tevi etc. What made Deacons go out of business is Boutique invisible compatition from Groceries stores that do attires and are several within Dar probably every street whereas in Kampala,Lusaka,Nairobi,Kigali there are no such mini-stores.

Have time to read this from a sister media of the east African

Uganda registers fastest retail business growth in EA

Kampala: Uganda has the highest rate of retail business growth in East Africa, according to research commissioned by the W-Stores, a clothing retail business based in Tanzania. Statistics provided by Mr Ali Mufuluki, the W-Stores chairman and managing director, indicates that Uganda’s retail business space has in the last five years been growing at a rate of 20 per cent compared to Tanzania's 15 per cent, and Kenya’s less than 15 per cent. Rwanda and Burundi are growing at between 10 and 5 per cent.

In a recent telephone interview, Mr Mufuruki, the founder of W-Stores, the legal franchise owners of Woolworth’s stores in Tanzania and Uganda told this newspaper that Uganda is the ideal retail business destination due to a fast rate of the market segment and relative ease of setting up businesses within its boundaries.

He said: “This year has in particular not been good for Ugandans, given the harsh economic times but more businessmen have continued to invest in the country, a mark of confidence in the country’s market potential.”

Uganda has in the last five years seen a rapid growth in retail businesses including; supermarkets, clothing lines, eateries and restaurants, boosted by an improved economic environment that has silently led the expansion of the country’s middle class that is desirous of quality consumables.

Reacting to the growth, Mr Tom Buringuriza, the acting executive director of Uganda Investment Authority, said: "It is true our retail sector is the fastest growing in the region.”

He said: “We are also more liberalised than any other in the region and our economy has been growing, a situation that has not been sudden but a reaction to several years of growth.”

In a separate interview, Mr Gideon Badagawa, the executive director of Private Sector Foundation Uganda, said: “The growth could be true because Uganda is known to be enterprising and demand driven.”

However, he added Uganda’s business growth is usually haphazard with no clear plan and guiding policies. “The lack of guiding principles and policies eventually could lead businesses to close shop, thus wasting millions in unfruitful investments,” he said.

http://www.monitor.co.ug/Business/-/...00/-/4u0vcw/-/

Originally Posted by Bongolala

Yeah we only have 2 malls and milimani city is they only one that I can say is like a real mall.

Our GDP is relying on minerals and those types of investments don't help improve the lives of as many pple.

Originally Posted by Bongolala

Yeah we only have 2 malls and milimani city is they only one that I can say is like a real mall

Geza Ulole...thanx for the reply, however, leave this kenyan gay pretending to be tanzanian....so between Mlimani mall and quality center which is bigger? here is where you will know this guy isn't a Tanzanian and the source of the news is Kenyan, as always competition.

Originally Posted by Bongolala

Our GDP is relying on minerals and those types of investments don't help improve the lives of as many pple.

here is another point to get to know this gay isnt a Tanzanian at all, most Kenyans assuming that since we have lot of minerals our economy is mineral-based.

GDP by sector: Agriculture (26.6%), Industry (22.6%) Services (50.8%)


where did you get this? "Our GDP is relying on minerals" we have lot of Kenyans with fake names attempting to derail our forum while Kenyan newspapers doing a great job of destroying our image.


All negative news come from Kenyan newspapers: Mobile Site|Nation Media Group|Nation Careers|Africa Review|The EastAfrican|Business Daily|NTV|NTV Uganda|Daily Monitor|The Citizen|Digital Editions|N-Soko

[kiligoland]

huyo msenge kama hana la kufanya aende akapakatwe

[u.g boy]

Originally Posted by Uhuru na Umoja

Geza Ulole...thanx for the reply, however, leave this kenyan gay pretending to be tanzanian....so between Mlimani mall and quality center which is bigger? here is where you will know this guy isn't a Tanzanian and the source of the news is Kenyan, as always competition.


here is another point to get to know this gay isnt a Tanzanian at all, most Kenyans assuming that since we have lot of minerals our economy is mineral-based.

GDP by sector: Agriculture (26.6%), Industry (22.6%) Services (50.8%)


where did you get this? "Our GDP is relying on minerals" we have lot of Kenyans with fake names attempting to derail our forum while Kenyan newspapers doing a great job of destroying our image.


All negative news come from Kenyan newspapers: Mobile Site|Nation Media Group|Nation Careers|Africa Review|The EastAfrican|Business Daily|NTV|NTV Uganda|Daily Monitor|The Citizen|Digital Editions|N-Soko

how is ugandan media :ntv uganda and daily monitor spewing any negative news about tz. there's rarely any news reports about tz in those two .

[Uhuru na Umoja]

Originally Posted by u.g boy

how is ugandan media :ntv uganda and daily monitor spewing any negative news about tz. there's rarely any news reports about tz in those two .

what I have mentioned on here are Kenyan newspapers with some bringing what we have. Just stay out of this.

[Uhuru na Umoja]

Originally Posted by Bongolala

It's is good to have a discussion about the economy and the reality and instead of abusing or attacking me discuss the issue. Every other country's forum do this but Tanzania hate the reality. We need a real opposition for our economy to grow.

you said tanzania GDP depends on minerals: here are facts:

Originally Posted by Uhuru na Umoja

here is another point to get to know this gay isnt a Tanzanian at all, most Kenyans assuming that since we have lot of minerals our economy is mineral-based.

GDP by sector: Agriculture (26.6%), Industry (22.6%) Services (50.8%)


where did you get this? "Our GDP is relying on minerals" we have lot of Kenyans with fake names attempting to derail our forum while Kenyan newspapers doing a great job of destroying our image.


All negative news come from Kenyan newspapers: Mobile Site|Nation Media Group|Nation Careers|Africa Review|The EastAfrican|Business Daily|NTV|NTV Uganda|Daily Monitor|The Citizen|Digital Editions|N-Soko

[Uhuru na Umoja]

Originally Posted by Bongolala

5 Februari 2012

Kauli kuhusu Hotuba ya Kikwete na Maadhimisho ya CCM


Mkurugenzi wa Habari na Uenezi

can you give us the source of this newspaper? its Mwananchi newspaper a kenyan newspaper all your sources are kenyan. you are not an intellect. you just puke with no evidence and when you give one, has Kenyan originality.

[chamoto]

Originally Posted by Bongolala

Najua kizungu shida lakini swanglish ndio ya kwako lakini habari ndio hii mkuu.

We nenda kale kungu kwanza, hata kiswahili chako sio cha kitanzania, wabongo hututumii neno kizungu, tunasema kiingereza.

[Bongolala]

Originally Posted by chamoto

We nenda kale kungu kwanza, hata kiswahili chako sio cha kitanzania, wabongo hututumii neno kizungu, tunasema kiingereza.

Haha desperation, sasa mnafuta points zangu. Lol. Ubishi lakini ukweli hampendi. Obsession na Wakenya itatumaliza. Kawaida watanzania na ukweli ni Kama maji na mafuta. Hakuna hata mmoja amejibu swali langu.

I will continue asking and giving u the reality.Continue calling me names coz U CAN'T HANDLE THE TRUTH.

[Bongolala]

Hahah wabishi. Sasa you decided to delete all my threads and messages. Lol because you can not handle the truth or anyone with a divergent view of our country. All you have done is call me names but not a single one of u answered.

[Bongolala]

Deacons, the clothing and lifestyle goods retailer, will close its Tanzanian operations in the next two weeks shielding it from continued losses in that market.



The fact that Deacons has found the going to be tough in Dar es Salaam highlights the challenges of doing business in Tanzania, which is ranked fourth out of the five member states in terms of the ease of doing business in the East African Community, according to the International Finance Corporation’s Ease of Doing Business report 2011.

The firm’s board decided to exit the country after its subsidiary, Tanzanian Fashion Stores, lost Ksh13 million ($154,394) in the full year ended December 2011, marking a fifth straight year of losses despite efforts to turn it around.

Deacons will close three stores in Tanzania: Truworths, Identity and 4u2 branded stores, and in the process shed 15 jobs.

The high cost of doing business in Tanzania, especially the high rental charges where a square foot of office space costs almost double what the prices in Kenya, Uganda and Rwanda, and that their target market, the upper to middle income — is very small compared with operations in other countries, led to the decision, the company said.

The cost of rental space in Tanzania is $40 dollars compared with $18 dollars per square foot in the rest of the region.

“The cost of doing business in Tanzania is 30 to 40 per cent higher compared with other markets. The middle class is also not as big and the uptake of our brands was also not as big,” said Deacons chief executive Muchiri Wahome.

Tanzania’s middle class make up just 12 per cent of the total population, which is far much smaller compared with Kenya’s 44.9 per cent and Uganda’s 18.7 per cent of the population. Rwanda’s middle class is at 7 per cent its population.

Dar es Salaam, Tanzania’s Capital, only boasts of two shopping malls. In contrast, Nairobi, Uganda and Rwanda are experiencing a boom in the construction of malls and hence rapid growth of the shopping mall concept.

Also, long supply chain in Dar es Salaam is a challenge, where it can take up to five times longer by air to clear and deliver goods compared with the rest of the region.

The firm will be looking to have a fire sale before it shuts shop by the end of February. However, the company will have to write off Ksh20 million ($237,500) in assets and inventories.

Although Deacons Tanzanian operations have been loss making, it expects to make profits from its operations in Kenya and Uganda boosting its overall profitability. Rwanda, where the retailer opened two stores in December has been a good market

In the six months to June 2011, Deacons’ sales grew by 38 per cent to $11.7 million compared with the same period last year. Profits after tax grew 51 per cent to $507,700 compared with the previous year.

The company said operations in Uganda were doing well with a 44 per cent growth in revenues contributing 7 per cent of the total group revenue for the 2011 financial year. Swedfund International is the main shareholder in Deacons, which is publicly traded firm, with a 19.45 per cent stake.

Pinpoint investment Ltd (12.06 per cent), Charles Mwangi Gathuri (11.04 per cent) and Diana Bird (11.03 per cent) are the other main shareholders of the publicly traded firm, which hopes to list its shares on the Nairobi Securities Exchange later this year.

[TZBoy]

Originally Posted by Bongolala

Deacons, the clothing and lifestyle goods retailer, will close its Tanzanian operations in the next two weeks shielding it from continued losses in that market.



The fact that Deacons has found the going to be tough in Dar es Salaam highlights the challenges of doing business in Tanzania, which is ranked fourth out of the five member states in terms of the ease of doing business in the East African Community, according to the International Finance Corporation’s Ease of Doing Business report 2011.

The firm’s board decided to exit the country after its subsidiary, Tanzanian Fashion Stores, lost Ksh13 million ($154,394) in the full year ended December 2011, marking a fifth straight year of losses despite efforts to turn it around.

Deacons will close three stores in Tanzania: Truworths, Identity and 4u2 branded stores, and in the process shed 15 jobs.

The high cost of doing business in Tanzania, especially the high rental charges where a square foot of office space costs almost double what the prices in Kenya, Uganda and Rwanda, and that their target market, the upper to middle income — is very small compared with operations in other countries, led to the decision, the company said.

The cost of rental space in Tanzania is $40 dollars compared with $18 dollars per square foot in the rest of the region.

“The cost of doing business in Tanzania is 30 to 40 per cent higher compared with other markets. The middle class is also not as big and the uptake of our brands was also not as big,” said Deacons chief executive Muchiri Wahome.

Tanzania’s middle class make up just 12 per cent of the total population, which is far much smaller compared with Kenya’s 44.9 per cent and Uganda’s 18.7 per cent of the population. Rwanda’s middle class is at 7 per cent its population.

Dar es Salaam, Tanzania’s Capital, only boasts of two shopping malls. In contrast, Nairobi, Uganda and Rwanda are experiencing a boom in the construction of malls and hence rapid growth of the shopping mall concept.

Also, long supply chain in Dar es Salaam is a challenge, where it can take up to five times longer by air to clear and deliver goods compared with the rest of the region.

The firm will be looking to have a fire sale before it shuts shop by the end of February. However, the company will have to write off Ksh20 million ($237,500) in assets and inventories.

Although Deacons Tanzanian operations have been loss making, it expects to make profits from its operations in Kenya and Uganda boosting its overall profitability. Rwanda, where the retailer opened two stores in December has been a good market

In the six months to June 2011, Deacons’ sales grew by 38 per cent to $11.7 million compared with the same period last year. Profits after tax grew 51 per cent to $507,700 compared with the previous year.

The company said operations in Uganda were doing well with a 44 per cent growth in revenues contributing 7 per cent of the total group revenue for the 2011 financial year. Swedfund International is the main shareholder in Deacons, which is publicly traded firm, with a 19.45 per cent stake.

Pinpoint investment Ltd (12.06 per cent), Charles Mwangi Gathuri (11.04 per cent) and Diana Bird (11.03 per cent) are the other main shareholders of the publicly traded firm, which hopes to list its shares on the Nairobi Securities Exchange later this year.

Too bad for them, shame they weren't able to make it work. I can't say I will miss simply because I have never shopped there.

[Bongolala]

Originally Posted by TZBoy

Too bad for them, shame they weren't able to make it work. I can't say I will miss simply because I have never shopped there.

I have shopped there a couple of times, sucks for me

[TZBoy]

Originally Posted by Bongolala

I have shopped there a couple of times, sucks for me

Too bad, i'm sure you'll find other places in Dar to shop

[mwanamwiwa]

Originally Posted by Geza Ulole

try to be rational on ur argument ask urself in the same market there are other stores that r doing fine even with that 12% though arguable..! Why don't u think the Deacons couldn't crack the hard nut and penetrate the market?

A middle class of 12% is shockingly low for the ''biggest'' country in the region!

[Bongolala]

What market is there to penetrate? The most disgusting thing is you have deleted all my points earlier because YOU CANT HANDLE THE TRUTH!

[Uhuru na Umoja]

Originally Posted by mwanamwiwa

A middle class of 12% is shockingly low for the ''biggest'' country in the region!

...that is according to your newspaper [Kenyan newspaper] always fabricating issues, its a kenyan character to steal either the truth/reality/money..and so forth. In real life Kenyans steal sugar, food, gemstom, from Tanzania and in skyscrapercity.com they steal our girls and post them on their thread. Try to lie everyone on here of who they real are.


lets look at 44.9% of middle class in kenyan as supposed by their newspaper:
in 2010, total population was 40,512.68
this is equvalent to 18,189,888 middle class totality.
Low income earners is above 18,189,888
other being 6,000,000
total: 42,379,776

I just need someone to get down with logically on this.

way beyond the total kenyan population, that is there is no employment problems in kenya and even kids of five months have jobs or just take the totality of kenyan workforce, its not working at all, they are freaking liars!

Tanzania total workforce is twice of kenyan, good thing about it is that, 77% are independed, self-employed in mining and mainly in agricultural sector.

but reality in kenya is: Students at Outspan Medical College skip a meal to feed the hungry. jamuhurireport.com

"Mr. Awori said Kenya is estimated to host more than 300,000 children and youth on the streets who engage in survival tactics that endanger their well being and that of the society. "Most of them are abused, neglected, exposed to criminal and gang activities, suffer poor health due to their lifestyles and exposure to harsh environment, drug and substance abuse, and exposure to HIV/AIDS infection", gvnet.com

For Starving Children of Kenya, 42 Tons of Dog Food.
"The first plan was to send dog biscuits and change the vitamins then when I heard there were so many little children I could not send them a bicky," she explained.

"The dogs thrive on it. They have energy, put on weight. It's bizarre but if it's edible and it works for these people, then it's a brilliant idea. It beats eating rice," she said. itsabouttimebpp.com

they are making noise due to "Deacons" what is the total investment of this shop/s? less that $1m. Tanzania/China single investment: $7billion. Tanzania/Brazil: $3Billion, talkless of $8billion to be injected by gas company soon. we cant change our pro-poor policies due to some shop/s like "Deacons" "shoperite" and the rest. Tanzania is a free market for them and the small-scale retailers, if they cant stand Tanzania small-scale retailers; they should just pack and go, quickly.

[mwanamwiwa]

Originally Posted by Uhuru na Umoja

...that is according to your newspaper [Kenyan newspaper] always fabricating issues, its a kenyan character to steal either the truth/reality/money..and so forth. In real life Kenyans steal sugar, food, gemstom, from Tanzania and in skyscrapercity.com they steal our girls and post them on their thread. Try to lie everyone on here of who they real are.


lets look at 44.9% of middle class in kenyan as supposed by their newspaper:
in 2010, total population was 40,512.68
this is equvalent to 18,189,888 middle class totality.
Low income earners is above 18,189,888
other being 6,000,000
total: 42,379,776

I just need someone to get down with logically on this.

way beyond the total kenyan population, that is there is no employment problems in kenya and even kids of five months have jobs or just take the totality of kenyan workforce, its not working at all, they are freaking liars!

Tanzania total workforce is twice of kenyan, good thing about it is that, 77% are independed, self-employed in mining and mainly in agricultural sector.

but reality in kenya is: Students at Outspan Medical College skip a meal to feed the hungry. jamuhurireport.com

"Mr. Awori said Kenya is estimated to host more than 300,000 children and youth on the streets who engage in survival tactics that endanger their well being and that of the society. "Most of them are abused, neglected, exposed to criminal and gang activities, suffer poor health due to their lifestyles and exposure to harsh environment, drug and substance abuse, and exposure to HIV/AIDS infection", gvnet.com

For Starving Children of Kenya, 42 Tons of Dog Food.
"The first plan was to send dog biscuits and change the vitamins then when I heard there were so many little children I could not send them a bicky," she explained.

"The dogs thrive on it. They have energy, put on weight. It's bizarre but if it's edible and it works for these people, then it's a brilliant idea. It beats eating rice," she said. itsabouttimebpp.com

they are making noise due to "Deacons" what is the total investment of this shop/s? less that $1m. Tanzania/China single investment: $7billion. Tanzania/Brazil: $3Billion, talkless of $8billion to be injected by gas company soon. we cant change our pro-poor policies due to some shop/s like "Deacons" "shoperite" and the rest. Tanzania is a free market for them and the small-scale retailers, if they cant stand Tanzania small-scale retailers; they should just pack and go, quickly.

Do you have a problem with me commenting on Tanzanian economic issues?You dont always have to attack Kenya to get your point across,okay?

[Uhuru na Umoja]

Originally Posted by Bongolala

What market is there to penetrate? The most disgusting thing is you have deleted all my points earlier because YOU CANT HANDLE THE TRUTH!

Originally Posted by name withheld;

A paradigm shift is needed. And a government with the courage and determination to face up to this and implement it is also needed. lakini you and me know very well we cant expect much from Rais LEGE LEGE and his Ministers who have fake PHDs and degrees...

the old days of command and conquer or Chama kushika hatamu na Fikra za mwenyekiti zidumu is over.... we have globalization and freedom of labour and movement means we cant be protective all the time....

we now know who you are and you have three name, one withheld and others are "soulrebel" "bongolala" you are not going to give us troubles any more.